Reference no: EM13856435
Jay Yang, EMBA-GA alumnus, is COO of Hen Hao Corporation. Answering his iPhone, his Board Chairman says:
"Jay. Those pesky Sarbanes-Oxley and Dodd-Frank things are causing our board members to ask more questions."
"Today two called asking for our break-even, and which product is most profitable."
"I'm sure you can handle it. By the way, we'll need answers by tomorrow morning's Board meeting at 9 am."
Hen Hao Corporation manufactures three different products in one facility.
Annual data are below:
|
|
Product A
|
Product B
|
Product C
|
|
Unit sales volumes
|
100,000
|
400,000
|
500,000
|
|
Unit sales prices
|
¥1.60
|
¥1.20
|
¥0.70
|
|
Variable costs per unit
|
¥0.75
|
¥0.85
|
¥0.30
|
Total Fixed Costs = ¥400,000 per year
Market conditions for all three products are highly competitive, so the company can't raise its prices without losing many customers.
Required:
1. What is the company's break-even point in total sales revenue? What are your assumptions?
2. Of the total fixed costs, ¥20,000 could be avoided if product A were dropped, ¥30,000 could be avoided if product B were dropped, and ¥110,000 could be avoided if product C were dropped. The remaining fixed costs ¥240,000 (the CEO's salary) can be avoided only by going out of business entirely. What is the break-even quantity for each product? If the company operates at exactly this break-even for every product, what is the overall
profit?
3. Which product is most profitable? Least profitable?
4. Should the least profitable product be dropped?
|
Conduct an inventory analysis of the firm
: Evaluate the organizations facilities with regard to capacity and location. Determine whether the organization has enough capacity and whether or not the facilities are strategically located.
|
|
What form or model of leadership would you bring to bear
: Given these circumstances, what form or model(s) of leadership would you bring to bear? Describe in detail the steps you would take to redirect the mission and vision of this new emerging entity
|
|
What is sexual harassment
: What is sexual harassment? Identify and describe the three elements which may constitute sexual harassment
|
|
Find a dot b if a = 3e1+ 5e2-e3 and b
: 2a.) Find A dot B if A = 3e1+ 5e2-e3 and B = e1 -e2+ e3 if e1 dot e1 = 2, e2 dot e2 = 3, e3 dot e3 = 5, e1 dot e2 = -1, e1 dot e3 = -3, e2 dot e3 = 2
|
|
Company break-even point in total sales revenue
: Jay Yang, EMBA-GA alumnus, is COO of Hen Hao Corporation. Answering his iPhone, his Board Chairman says: "Jay. Those pesky Sarbanes-Oxley and Dodd-Frank things are causing our board members to ask more questions."
|
|
Competence in conceptual database design of database models
: competence in conceptual database design of database models
|
|
Phasing relation between primary and secondary voltage
: What is the the transformer phasing relation between primary and secondary voltage and current, in The Dot Notation and Dot Convention ?
|
|
What is the role of capacitor in ac and dc circuit system
: What is the Role of Capacitor in AC and DC Circuit system ?
|
|
Draw the cost diagram for an average firm
: Draw the cost diagram for an average firm, including average fixed cost, average variable cost, average total cost, and marginal cost. Suppose advances in production technology make each product easier to make than it was before. Draw a new cost d..
|